Money Blog - Lump-sum debt paydown versus saving and investing

This week we're going to figure out how much I'll still owe on my mortgage in a decade if I use the inheritance I received from Aunt Matilda to pay it down faster.


THE SCENARIO:

Building off the last couple of articles, we're going to stick with my mortgage. To recap, here are the pertinent details:

I put $100,000 down and borrowed $350,000 to buy a house 34 months ago. The mortgage amortizes fully over 30 years, has monthly payments of $2,241.09,and the rate is 6.625%. I still owe $338,465.83, and thanks to a generous inheritance from my late Aunt Matilda, I have $100,000 to use to help me with my mortgage.

I'm going to imagine myself 10 years in the future, and figure out what m... Read more...